Buy Electronics Mart India; target of Rs 90: LKP Research

LKP Research is bullish on Electronics Mart India has recommended buy rating on the stock with a target price of Rs 90 in its research report dated May 29, 2023.

Broker Research

May 30, 2023 / 14:31 IST

buy

26 Aug, 2025 12:21

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Todays L/H

LKP Research's research report on Electronics Mart India

Electronics Mart (EMIL) had a steady quarter on expected lines and results were largely in line with our estimates. Revenues were up 8% /23% YoY for Q4FY23 and FY23. Q4 being seasonally strong quarter for larger category like AC and coolers has been lower due to intermittent rains which had impacted sales. However, growth in the category has recovered well in the first two months i.e April and May due to higher temperature. Break Even for stores is expected in 12- 14 months and Delhi/ NCR stores are on track for the same (~8 months since opening). Stores opened during Corona across Telangana and Andhra have started to perform too and are expected to contribute positively to the company’s growth. SSG stood at 17% for FY23. Margins during Q4FY23 stood at 6.8% while for FY23 it stood at 6.2%. Higher business promotions and ads due to new region additions led to lower margins YoY for Q4 and FY23. Management expects margins to be in the range of 6.5% to 7% for next few years while expects revenues to grow at ~25% CAGR from near2-3 years. PAT in Q4 was up 2% YoY and 18% higher for FY23. 24 new stores were added during FY23 across the regions and expects 25-28 new store additions (Telengana-5, AP-10 & Delhi/NCR-13) during FY24.

Outlook

The company valuations have been reasonable compared to competition and we maintain Buy on the stock with PT of ₹90.

For all recommendations report, click here